TECH & AI Several insurers have experimented with and implemented smart contracts : A notable success story is the smart contract-based policy developed by AIG and Standard Chartered in partnership with IBM , piloted in 2021 . The implementation was particularly complex , involving a multinational , multi-risk transfer policy with multiple jurisdictions adding to the intricacy .
Commercial Applications The ConsenSys ’ blockchain suite aims to address flaws in the insurance industry . With Ethereum ’ s smart contracts and decentralised applications , insurance can be conducted over blockchain accounts , introducing more automation and tamper-proof audit trails . Notably , the low cost of smart contracts and their transactions means that many products can be rendered more competitive for penetration of underinsured markets in the developing world .
The emerging blockchain ecosystem also requires insurance . Cyber insurance can be taken as a template for coverage , with extensions and endorsements for financial loss ( hot wallets and exchanges ), specie and crime ( cold wallets and vaults ), professional liability ( developers ), and surety bonds ( technology and software projects ). Insurers can cooperate with tech companies , such as Consensys Diligence , to assess risk and advise on best practices for loss control and mitigation .
Nationwide Insurance is demonstrating a strong commitment to blockchain technology . The company not only joined the RiskBlock Alliance but also became the first to adopt the alliance ’ s blockchain platform . This platform enhances safety and efficiency by enabling quicker proof of insurance , allowing customers to
112 September 2024